Make Saving Feel Easier With These Mental Tricks
We all know we should save. Why is it so hard to do that even after necessities are paid for?
For many people, saving money sounds simple in theory but can feel difficult in practice.
"When people experience financial setbacks, it creates a negative association with finances and perpetuates negative self-talk around their money situation," said Andrea Woroch a consumer and money saving expert at AndreaWoroch.com, adding that some of this stems from childhood experiences and family attitudes towards money.
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Long-term thinking also plays a role, according to Sarah Newcomb, senior behavioral scientist at Edward Jones.
"People who think mostly in the short term," she said, "... often struggle to save because the future feels distant and uncertain, making today's small pleasures feel more rewarding than tomorrow's larger gains."
As the problem can be more psychological than financial, experts have offered solutions to get over your mental block. Here are a few small mindset shifts that can make saving feel more manageable.
Start Small and Use Positive Reinforcement
One of the simplest mental tricks for saving is starting with very small actions that build confidence and momentum.
Woroch encouraged people to reinforce positive saving behavior.
"First, tell yourself you are good at saving. Positive money affirmations can lead to positive money management," she said. "Do something to prove yourself right, such as transferring a small amount of money to a savings account."
This can be as little as $10 to $20 per week.
Newcomb agreed that small wins can create powerful motivation.
"Progress is a strong motivator, but your goals need to match your personality and capacity," she said
Reframe Saving as Freedom Rather Than Restriction
Your mindset about savings goals can dramatically influence motivation, so reframing your mindset can help.
"If money feels tied to freedom and fun, try reframing your emergency fund as a 'freedom fund,'" Newcomb said, "a cushion that lets you walk away from a bad job, handle surprise expenses without taking on debt and create more choices in your life."
Woroch said that attaching savings to meaningful goals can make the process feel more rewarding.
"Saving for a vacation is a reward, so giving up daily purchases or a monthly expense in order to go on that trip will feel worthwhile," she said.
Automate Savings and Keep It Out of Sight
Automation removes the emotional friction of deciding whether to save each month.
"Setting up automatic transfers from your checking to saving is the best way to create consistency with saving," Woroch said.
The "out of sight, out of mind" mental trick means you'll be less tempted to spend it, too, she added.
"Automation is a huge advantage for natural spenders because it moves money into a future-focused account before you ever see it," Newcomb said.
Break Big Goals Into Smaller Wins
Large savings goals can feel overwhelming, which can cause people to avoid starting altogether. Creating smaller milestones helps build momentum and motivation. Woroch suggested visualizing your progress to fuel motivation.
"Within a larger savings goal," she said, "it's wise to have smaller goals and targets that feel easier to accomplish."
Newcomb compared saving to building physical endurance.
"Think of it like training for a marathon," she said. "You don't go from the couch to 26 miles overnight; you start with small, doable steps and build your strength and endurance bit by bit."
Watch Out for Mental Traps That Sabotage Saving
Even people with enough income to save can struggle with certain mental traps. Woroch pointed to one common spending behavior, "spaving," which is when you spend more to (arguably) save more.
"Don't let a deal influence your purchase decision," she said.
If it's something you need, and how much you need of it, then it's a deal. But if it's something (or an amount) you wouldn't have bought otherwise, you're just spending money needlessly.
Newcomb said that social pressure can also derail savings.
"We see the material wealth of others — that is sometimes fueled by debt we don't see — and think that we need to have the same things in order to fit in," she said.
Make Small Shifts
Small shifts make the process far easier. Over time, these simple mental tricks can help turn saving from a stressful obligation into a sustainable habit.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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